01 Mar 3 Reasons Why Subcontractors are using Data to Make Better Construction Bid Decisions
There’s a well-known phrase in business: “If you can’t measure it, you can’t improve it’. Over the last 10-15 years we have seen an explosion of software designed to track, measure and analyze ‘big data’ with major industries rushing to adopt these tools to help improve the bottom line. The construction industry’s leading players are making significant investments in digitizing their business processes that is creating data to drive advantages in their business.
The newest generation of subcontractors are collecting and using data to gain more insight into where they are winning business, where they can avoid margin fade and ultimately reduce project execution risk. A key benefit of our cloud-based business automation platform is being able to put your finger on the pulse of your bidding and sales process to quickly understand what’s working, and what’s not.
1. Understanding the Likelihood of Winning
In our conversations with estimators and leadership at our trade and specialty contractor clients, the first important decision made on any opportunity is, “What is the likelihood of winning this bid?” Time is money. Knowing in advance whether it makes sense to invest in a bidding process—based on your chances of winning—can significantly alter the economics of your business.
2. Where To Direct Your Team’s Time
Another question we hear often from CEOs and owners is, “What bids should my estimating team focus on?” One size does not fit all subcontractors, and some projects are more suitable and profitable than others.
RhinoDox tracks data for each project created and managed in our platform, providing crucial insights into bids won and lost. We then can begin to measure how you performed on jobs you won in a quick post-mortem which further assists in evaluating the opportunity cost/benefit for responding to future bid requests. With a finite number of estimating personnel, it is crucial to keep them focused on the business that makes the most sense.
3. Building Better Relationships With GCs… Or Moving On
A CEO recently told us that he wanted visibility to those GCs where they never win. He wanted the data so he could reach out and ask what his company needed to do to be successful.
If your firm’s bids are consistently not selected by a particular GC, it may be that they are using your estimates to act as a price check against a favored partner. Having the data gives you the opportunity to decline their future requests and avoid time wasted or reach out and try to build a deeper relationship.
By using data you can focus more resources on the projects you know you stand a high chance of winning, and you can proactively source more of these projects by size, industry, general contractor, etc.
RhinoDox can help you deploy your estimating resources more effectively to help identify and increase your chances of winning the right projects. If you’d like to learn how you can win more business by equipping your current workforce with the right information and tools, then reach out to us here.